Moving Investments from the Stock Market to Professional & Social HMOs
Interesting that I had 2 calls from potential investors who wanted to cash out of the stock market and to invest in Professional HMOs and Social HMOs. Actually had the same when we were investing in the USA in 2007. We closed our bridging company and stopped doing deals in Jan 2006 as prices became un affordable.
Prices in Manchester for HMOs are going bonkers. Investors are coming from China, Hong Kong and India….not just London. They have bid up the prices ( overpaid possibly) and now we are seeing adverts in Spareroom for free rent ranging from 2 weeks to 1 month. This is crazy. More so, builders are so busy they can not keep up nor in many cases warranty their works ( we have been told).
So what do you do? The stock market is a roller coaster and in all honesty Professional HMOs and Social HMOs have their issues as well. No silver bullet…nothing easy…
We are investing in areas outside of Manchester which have not seen prices take out the 2008 highs. Rents are high…Competition is low. As long as there is employment, professional HMOs will flourish. We make them to a high standard and put in en suites. Most investors want to squeeze the last pound out of a property and do not want to invest. A simple rule
Would you live here? If not, probably many tenants will not either.
Bottom line…The stock market has had a great run. Bull markets do not last forever. Property markets also bubble over like Salford is currently. We want to try to be as safe as possible and have consistent yields in our HMOs. It is not easy. Tons of work. I was up at 5am answering emails and preparing my day. Investing in property is not easy…investing in Professional HMOs also is challenging.
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